Government allows sale of 25% coal from captive mines in open market

The decision is aimed at increasing competitiveness and to make the future tranches of auction/allotment attractive and commercially viable leading to higher revenues for the government, an official statement said.Sarita C Singh | ET Bureau | February 20, 2019, 08:15 IST

NEW DELHI: Union cabinet on Tuesday approved sale of 25% of coal production from captive mines in open market with payment of additional premium on such sale.

The cabinet committee on economic affairs has approved the methodology for allowing allocation of coal mines for specified end use or own consumption to sell 25% of actual production in open market with premium of 15% on such sale under the (Coal Mines Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act 1957, an official said.

The decision is aimed at increasing competitiveness and to make the future tranches of auction/allotment attractive and commercially viable leading to higher revenues for the government, an official statement said. The move will address the issue of lack of response from bidders during earlier tranches of auction and allotments, it said.

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